Pricewatch: 2 February, 2018 - chewing gum

Analysis

A huge 78% of the retailers we surveyed this week charge above the 49p RRP for a packet of Airwaves Menthol and Eucalyptus. Around 25% venture just 1p above for a round 50p price, while a further 52% add up to 20p, showing how many stores have leaped on the opportunity to glean additional margin from a highly impulsive category. 

 

It’s a clear pattern demonstrated on our Price Checker table too, where 54 out of 60 stick-packs of gum are priced 5p-11p above Booker’s RRP. Retailers in our survey were more mixed, however, with those who stick to RRP to fend off local competition balanced by those who cross-sell gum with food to go to boost high sales still further. 

Profit checker

PRICE Price distribution %

Price checker

Average UK retail price Booker RRP C-STORE ON A SUBURBAN HIGH STREET IN PORTSMOUTH SMALL NEWSAGENT NEAR A TRAIN STATION IN WELSH COUNTRY TOWN SMALL HIGH STREET C-STORE IN A WEST YORKSHIRE TOWN LARGE HIGH STREET SHOP IN CENTRAL STOKE C-STORE IN LIVERPOOL NEIGHBOURHOOD SUBURB TOWN CENTRE C-STORE IN DEVON COASTAL TOWN
WRIGLEY'S EXTRA SUGAR FREE PEPPERMINT 14G £0.54 £0.43 £0.45 £0.45 £0.59 £0.49 £0.55 £0.69
WRIGLEY'S EXTRA SUGAR FREE SPEARMINT 14G £0.54 £0.43 £0.45 £0.45 £0.59 £0.49 £0.55 £0.69
WRIGLEY'S EXTRA WHITE BUBBLEMINT 14G £0.54 £0.49 - £0.50 £0.59 £0.55 £0.59 £0.69
WRIGLEY'S EXTRA SUGAR FREE COOL BREEZE 14G £0.54 £0.43 £0.45 £0.45 £0.59 £0.49 £0.55 £0.69
WRIGLEY'S AIRWAVES SUGAR FREE MENTHOL & EUCALYPTUS 14G £0.54 £0.49 £0.49 £0.50 £0.59 £0.55 £0.55 -
WRIGLEY'S EXTRA ICE WHITE 14G £0.56 £0.49 £0.49 £0.50 £0.59 £0.55 £0.59 £0.69
WRIGLEY'S EXTRA ICE PEPPERMINT 14g £0.56 £0.49 £0.49 £0.50 £0.59 £0.55 £0.59 £0.69
WRIGLEY'S EXTRA STRAWBERRY SUGAR FREE 14G £0.54 £0.43 £0.45 £0.45 £0.59 £0.49 £0.55 £0.69
WRIGLEY'S AIRWAVES CHERRY MENTHOL 14G £0.56 £0.49 £0.49 £0.50 £0.59 - £0.55 £0.69
WRIGLEY'S EXTRA ICE SPEARMINT 14G £0.56 £0.49 £0.49 - £0.59 - £0.59 £0.69
WRIGLEY'S AIRWAVES EXTREME 14G £0.56 £0.49 £0.45 £0.50 £0.59 £0.55 £0.55 £0.69
WRIGLEY'S EXTRA PEPPERMINT BOTTLE 64G £2.00 £2.00 £2.00 £2.00 £2.00 £2.00 - £2.00
Data supplied by
Data supplied by

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How we drive our profit

Raj Aggarwal Avatar

Raj Aggarwal

Spar

Location: Market Harborough, Leicestershire

Size: 2,000sq ft

Type: town centre

Top Tip
Look for opportunities to link-sell gum with other products as impulse items
We price above the 50p RRP suggested by Blakemore and this helps us earn an average 30% margin from chewing gum. We do this because customers aren’t really too bothered about price because they see it as an essential product. A lot of people buy gum on impulse, which really helps as well. We sell a lot of food to go products such as coffee and sandwiches. The majority of our customers are office workers and placing these by the till normally helps. They want chewing gum to keep their breath fresh when they buy other products, so it is a good seller.
Vicky Singh Avatar

Vicky Singh

Londis

Location: South London

Size: 2,200sq ft

Type: residential

Top Tip
Advertising chewing gum near food to go is a great way to drive sales
We aim for a 50% margin by charging 65p on chewing gum products. This works because we don’t have that much competition nearby and customers see chewing gum as an essential purchase, so our volume sales remain high. The demand is excellent because we normally sell seven boxes of 30 packets on a daily basis. We display them near our hot dog and coffee machines so customers are more tempted to buy them and keep their breath smelling fresh after eating food. We always place the bestsellers on the top shelves because customers notice them instantly.
Fiona Malone Avatar

Fiona Malone

Tenby Village Stores & Post Office

Location: Pembrokeshire

Size: 900sq ft

Type: high street

Top Tip
Gum sells fast, so make sure you have them displayed in a great position
We’ve got a post office which drives a lot of business into our store, so we sell chewing gum at RRP because our footfall is high enough to generate good sales. We do have competition from nearby stores, but I don’t think we’d be affected too much if we did decide to increase our prices to get higher margins. The majority of our customers are either workers or tourists, so chewing gum products are among some of the most popular add-ons when they come in to buy their lunches. I’d say all Wrigley’s products sell very well.
Jack Matthews Avatar

Jack Matthews

Bradley’s Nisa Supermarket

Location: Loughborough

Size: 2,600sq ft

Type: residential

Top Tip
Make sure your entire range of chewing gum is clearly visible by your till
Local competition is one reason why we stick to RRP on chewing gum. Even more so, though, we choose to do this because our shoppers all seem to think that chewing gum will be priced around the 50p mark. If we set our prices any higher, they probably wouldn’t bother buying it from us. It’s a subconscious thing really. We have a mix of kids and adults buying chewing gum from us. The adults are often commuters who want gum with them during their normal working days, especially after they buy coffee in the morning before catching the train.

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